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"If you're going to panic, do it fast and beat the crowd." ~ Jesse Livermore

Friday, August 31, 2012

September Offers 15 Days to Cement Europe Crisis Solutions

September Offers 15 Days to Cement Europe Crisis Solutions
Businessweek
Draghi said that may spur the ECB to buy short-dated bonds in the secondary market, albeit only in concert with direct purchases from governments by Europe's rescue fund, with accompanyingeconomic conditions. Buying Bonds. “Unlimited intervention by ...

From the Economist: Clinton, Cardoso and Blair--Three ex-leaders meet in Brazil - " . . . Before becoming president, Mr Cardoso was Brazil's financial minister, and led the Real Plan which introduced a new currency, stabilised the economy and ended hyperinflation. That makes him a veteran of pushing through reforms during crises—and his take was interesting. "The political situation [in the run-up to the Real Plan] was chaos," he said. "Some people said it would be impossible, but my opinion was the opposite. When you don’t have order it is easier to do something, not harder. Europe is approaching a chaotic situation … when it will be easier to impose new rules. . . . "

Euro-Zone Confidence Falls
Wall Street Journal
Confidence among euro-zone consumers and businesses fell to its lowest in three years in August, below economists' forecasts and suggesting that the debt-saddled currency bloc's economy has further to fall. ... The mood among Spanish businesses also ...

Global shares dip, euro gains ahead of Bernanke speech
Reuters
NEW YORK (Reuters) - Global stocks fell on Thursday on uncertainty over the prospect foreconomic stimulus by the U.S. Federal Reserve while the euro edged up after China voiced some support for the debt-troubled euro zone. ... The euro gained some ...

ECB rescue plan underpins Italian bond auction
Reuters
MILAN/BEIJING (Reuters) - A successful Italian bond auction on Thursday pointed to confidence among investors that the European Central Bank will keep its word and take measures dramatic enough to get a grip on the euro zone's debt crisis. In Beijing ...

German jobless rises as euro crisis bites
Reuters
Gross domestic product (GDP) growth slowed to 0.3 percent in the second quarter as companies, nervous about the debt crisis sweeping southern euro zone states, cut back on investments. Many economists are expecting ... are slashing thousands of jobs ...

Moody's: Euro-Area Crisis Still Poses Greatest Risk to Global Outlook
Wall Street Journal
The global economic recovery is at risk of faltering due to the euro-zone debt crisis, Moody's Investors Service Inc. said in its latest macro-economic risk report. The rating company said globaleconomic growth in 2012 will be materially lower than in ...

China Offers Cautious Support for Europe
Wall Street Journal
Mr. Wen expressed worries over Europe's debt troubles at a news conference jointly held with Ms. Merkel, on her second trip to China this year to assuage Chinese fears about euro-zone sovereign debt crisis and to boost economic ties. "The Europeandebt ...Wall Street Journal

Polish economy slows sharply, yields to euro zone gloom
Reuters
There is also little hope of foreign trade driving growth as nearly 80 percent of Poland's exports go to other parts of the EU, where the economic downturn and a debt crisis have crippled demand for goods. Company results published earlier in August ...

Austria watchdog wants wide ECB bank supervisor role
Reuters
ALPBACH, Austria Aug 30 (Reuters) - The European Central Bank should take charge of all euro zone banks, not just those considered lynchpins of the wider banking system, Austria's financialregulator said on Thursday. Helmut Ettl, executive director of ...

Fiscal Cliff Doesn't Look So Bad After the Fall
Bloomberg
Just when you thought you could forget about the fiscal cliff and focus on the Republican and Democratic conventions instead, along comes the Congressional Budget Office to remind us of the impending threat. In its midyear budget and economic outlook ...

Best Sectors to Survive the Fiscal Cliff: Analyst
CNBC.com (blog)
Chances that the U.S. economy will experience the so-called fiscal cliff are about 15 percent, Utz said. If that happens, GDP could experience negative-5 percent growth, “and potentially negative-3 percent for Q2 before we eventually see a bit of a ...

Are Small Caps Vulnerable to the Fiscal Cliff?
Investorplace.com
Why would the fiscal cliff — the combination of tax increases and spending cuts set to go into effect at the beginning of 2013 — have a disproportionate impact on smaller companies? Unlike the European debt crisis or the concerns about China's growth ...

Moody's Zandi: More QE Will Come, But After the Elections
Moneynews
At the end of the year, tax cuts are scheduled to expire at the same time automatic public spending cuts kick in, a combination known as a fiscal cliff that could send the economy sliding into a recession if left unchecked by Congress. ... Since the ...

How to Safely Scale Down the Fiscal Cliff
NWAOnline (subscription)
WASHINGTON COUNTY — Pundits pounced earlier this year when Federal Reserve Chairman Ben Bernanke warned that the country will face a "massive fi scal cliff " at the beginning of 2013. It seemed we had to extend the Bush tax cuts - or else.

Eurozone crisis largest threat to global growth, says Moody's
IFA Magazine
Although the slowdown in emerging markets, particularly China and Brazil, and the approaching USfiscal cliff continue to be risks, the Eurozone sovereign debt crisis is still the largest threat to the recovery in the global economy, according to Moody's.

This Cash Rich $10 Defense Stock Is Oversold
Seeking Alpha
Defense contractors have had a rough go of it in 2012, mainly on the possible impacts generated from any inability to avoid the "Fiscal Cliff" which will mandate some $50B a year in cuts to the overall defense budget. Mercury Computer Systems (MRCY ...

'Fiscal Cliff' … an Illusion or Reality? by Charles Goyette
We do get these buzz phrases about the economy, don't we? A special jargon of the financial press and the commentariat, shorthand expressions intended to suggest the speaker has an especially intimate understanding of economic events.
LewRockwell.com